FEC-Result-Rapid-Impact-Assessment-Feb911 Compressed
FEC-Result-Rapid-Impact-Assessment-Feb911 Compressed
FEC-Result-Rapid-Impact-Assessment-Feb911 Compressed
Acknowledgements: This study on the Rapid Impact Assessment of the Financial and
Economic Crises was implemented by the United Nations
Development Programme (UNDP) Belize in collaboration with the
Ministry of Economic Development and supported by Consultant,
Patricia Mendoza. Thanks to Economists, Jeanette Garcia and Carlos
Pol of the Ministry of Economic Development, who were part of the
Project Execution Group. The technical staff of the Statistical
Institute of Belize (SIB) reviewed the methodological approach,
collaborated on data processing and provided a review of results.
Kristine Blokhus, former Assistant Resident Representative guided
the project development process. This report was implemented with
funding from the Poverty Thematic Trust Fund (PTTF).
The views expressed in this publication are those of the author and
do not necessarily represent those of UNDP.
Rapid Impact Assessment of Financial and Economic Crisis on Poverty and Vulnerability
iv
Content
Foreword .........................................................................................................................................iv
Content ............................................................................................................................................v
Abbreviations ................................................................................................................................. vii
1. Introduction and Summary Conclusions ................................................................................... 1
2. Macroeconomic and Social Protection Context ........................................................................ 4
A. Macroeconomic Evidence of Financial and Economic Crises ................................................ 4
B. Social Protection Strategies and Priorities .............................................................................. 5
i. The Institutional Arrangements for Social Protection in Belize ....................................... 5
ii. Current Social Policy Priorities ......................................................................................... 7
3. Community Level Evidence of Financial and Economic Crises and Impacts ............................ 10
A. Participatory Poverty Assessments Results and MDG Linkages ........................................... 10
i. Poverty Reduction .......................................................................................................... 10
ii. Universal Education........................................................................................................ 11
iii. Gender Equality and Women Empowerment ............................................................ 11
iv. Reducing HIV/AIDS, Tuberculosis, Malaria and other diseases ................................. 11
v. Environmental Sustainability ......................................................................................... 12
vi. Vulnerability related changes and/or coping strategies ............................................ 12
B. Statistical Analysis ................................................................................................................. 12
i. The 2006 Status .................................................................................................................. 14
ii. The 2009 Status ................................................................................................................. 19
4. Key Risk Management Issues, Identified Changes and Recommended Measures .................. 20
A. Key Issues and Identified Changes ..................................................................................... 20
B. Measures for Mitigation of FEC Impacts ........................................................................... 21
Bibliography .................................................................................................................................. 24
Annex 1: Approach to the Analysis .............................................................................................. 25
Annex 2: Key Concepts................................................................................................................. 27
A. Exogenous Shocks and Transmission Channels .................................................................... 27
B. Poverty and Vulnerability...................................................................................................... 27
C. Social Protection................................................................................................................... 28
D. Macroeconomic and Transmission Indicators ...................................................................... 30
Rapid Impact Assessment of Financial and Economic Crisis on Poverty and Vulnerability
vi
Abbreviations
BEST Belize Enterprise for Sustainable Technology
BTL Belize TeleMedia Limited
CARICOM Caribbean Community
CPA Country Poverty Assessment
ED Enumeration District
FEC Financial and Economic Crises
GDP Gross Domestic Product
HIV/AIDS Human Immunodeficiency virus/Acquired immune deficiency syndrome
ILO International Labour Organization
IMF International Monetary Fund
KHMH Karl Heusner Memorial Hospital
LFS Labour Force Survey
LSMS Living Standards Measurement Survey
MDG Millennium Development Goal
NGO Non-Government Organization
PPA Participatory Poverty Assessment
PTTF Poverty Thematic Trust Fund
SISB Single Information System of Beneficiaries
SBR Single Beneficiary Registry
SSB Social Security Board
TOR Terms of Reference
UNDP United Nations Development Program
US United States
YWCA Young Women’s Christian Association
1,500.0
show the channels 70
100
at the macro-level of the 80
60
domestic economy also transmit 40
20
0
to communities, particularly 6
Holzman and Jorgensen (2001); World Bank (2003)
through the labour market. For describe a social risk management framework which
the economically disadvantaged includes social protection and non-social Poor
protection
segment of the population who strategies that provide for preventing, Non-Poor
mitigating
against and coping with risk.
Rapid Impact Assessment of Financial and Economic Crisis on Poverty and Vulnerability
10
Share of women in wage employment in
ii. Universal Education
the non-agricultural sector
Ratios of girls to boys in primary education
There is a perception by the female
Some participants indicate that participants that the differential
children are ‘kept back’ from school between men and women’s wages
(at the primary level) because of a has been increasing in recent years.
lack of clothes, shoes and/or other
resources. While mention was made iv. Reducing HIV/AIDS,
of this coping strategy in several of Tuberculosis, Malaria and other
the UNDP commissioned PPAs, the diseases
number of respondents indicating Condom use at last high risk sex
this as a measure in the CPA
PPA participants indicate an
community meetings and transect
observed increase in levels of
walks was minimal.
prostitution. If one infers that, as
Parents indicate that they are has been confirmed in other
finding it increasingly difficult to find Caribbean countries, a significant
the lump sums needed to finance proportion of these encounters are
the transition from primary to without the protection of condoms,
secondary levels. a further deduction can be that they
Participants assert that over the can lead to higher health risks for
recent years, there been an increase contracting HIV/AIDS and other
in trafficking of young girls by their sexually transmitted diseases.
parents. Another response to the recent
Participants recount incidences of declines in employment and income
child abuse and indicate an increase levels indicated by participants is
in levels. While this is not an MDG postponement in seeking healthcare
indicator, it no doubt affects school in order to reduce expenditures.
performance and therefore poses a
Have halted by 2015 and began to reduce
risk to the achievement of MDG 2.
the spread of Dengue and Malaria
iii. Gender Equality and Women Participants assert that incidences of
Empowerment Dengue and Malaria are evident in
Participants assert knowledge of their communities. This perception
increase incidences of domestic is confirmed in part by a spike in the
violence against women. This can rate of Dengue from 3.7 per 100,000
directly undermine achievement of to 12.1 per 100,000 at the national
gender equity indicator for reducing level between 2006 and 2008, and
incidence of domestic violence per from 8.9 per 100,000 to 35.2 per
agreed targets for the Caribbean. 100,000 in Belize City over the same
period (Office of Director of Health
11 3. Community Level Evidence of Financial and Economic Crises and Impacts | United Nations
Development Programme
Services, Epidemiology Unit, 2007; The changes and strategies adopted point
ibid, 2009). to the areas and types of interventions that
Participants also point to increases should be developed to reduce the impact
in stress levels. This can lead to of the crisis and to support families to re-
increased incidences of stress construct their lives and build resilience
related diseases, which is consistent against future exogenous shocks.9 In the
with the noted prevalence of non- main, they imply a need for stronger social
communicable diseases amongst the safety net provisions to support improved
top five causes of death in the earning capacity of the least advantaged,
country. ensuring children complete all levels of
education and improving housing and
v. Environmental Sustainability habitat conditions. Current and prospective
Proportion of urban population living in social safety net provisions and
slums recommendations for specific areas of
change are explored in later chapters of this
Some homes in the areas where report.
participants of the PPAs reside are
described as ‘makeshift wooden B. Statistical Analysis
houses’, and ‘houses and shacks
The results of the PPAs were used as
made of substandard material’. In
indicators for the empirical investigation of
addition to these observations by
the impacts of the crisis on the same
the facilitators of the PPAs,
communities using labour force survey (LFS)
participants cite observations of
data. Since the food and energy crises
increases in over-crowding and the
occurred in 2007 and the financial crisis in
implementation of ‘shifts’ in some
2008, data from the 2006 LFS was used to
homes in order to allow all persons a
establish a profile of the communities prior
chance to rest.
to the events. The analysis sought to
vi. Vulnerability related changes identify key features of respondents from
and/or coping strategies the same communities from which the PPA
Participants acknowledge higher participants were drawn. To achieve this,
dependence on remittances in enumeration districts (EDs) which fit within
recent years. the boundaries used for the PPA were
The practice of begging is observed
as being on the rise. It is interesting 9
to note that participants indicated a An exogenous shock is defined by the International
Monetary Fund (IMF) as “a sudden event beyond the
perception of begging by women control of the authorities that has a significant
being more readily accepted than negative impact on the economy.” In addition to
begging by men. this definition, further understanding can be gleaned
Engagement in illicit and illegal from the very definition of exogenous—which
Merriam-Webster defines as “introduced from or
livelihoods activities are increasing produced outside an organism or system
(sale of drugs, stealing and (http://www.merriam-
gambling). webster.com/dictionary/exogenous, downloaded
August 2, 2010).
Rapid Impact Assessment of Financial and Economic Crisis on Poverty and Vulnerability
12
identified. This could be successfully done Once the profile or key features of the 2006
for all of the communities except Belama, LFS household and individual survey
where there was only a single large respondents from the areas where PPAs
enumeration district that included relatively were conducted had been undertaken,
affluent neighbourhoods such as the analysis of the 2009 LFS data was
Buttonwood Bay area. This made it attempted. This was intended to identify
impossible to separate data for the Belama key features of households and individuals
Phase III and IV neighbourhoods for which a from within the same neighbourhoods that
PPA was conducted.10 The PPA areas which PPAs were conducted, as well as differences
informed the analyses therefore are those from the profiles of the 2006 LFS
listed below. Maps of these areas, as well respondents. Due to data limitations,
as of the Belama community, can be found however, it was only possible to identify key
at Annex 5, whilst frequency tables features and differences at the household
generated through the statistical analyses level.
can be found at Annexes 6 and 7. The analysis aimed to verify both the
Belize City impact on the communities implicit in the
macroeconomic analysis and the results of
1. Port Loyola (mainly around the Jane
Usher Boulevard) the participatory poverty assessments. To
this end, attempts were made to determine
2. Yarborough (mainly along the sea
the following:
front)
3. St. Martin de Porres (an area within 1. Underlying vulnerabilities of the
the Lake Independence communities;
constituency) 2. Correlation between income and
4. Pickstock (a portion of the political key variables linked to any of MDGs
division) 1 through 8;
3. Extent of changes in a number of the
Dangriga Town
key variables linked to MDGs related
1. Wageirale-Benguche to those conditions where the PPAs
2. Back-a-Town indicated changes since the onset of
the crisis; and
4. Correlation between income and the
10
It is to be noted too that enumeration districts variables a) immigrant status, b)
were reconfigured for the implementation of the dependence on remittances, c)
2010 census. Where Belama is concerned, the informal sector employment, d) self-
original large ED is now configured into
employment and e) access to
approximately four new EDs. These allow for
separation of the various Belama communities government programs.
(Phases I, II, III and IV). This reconfiguration will Overall, the analysis sought to measure the
apply to surveys undertaken subsequent to the
census only. There was therefore no corrective extent of changes in income and in key
measure available to allow for inclusion of Belama variables linked to MDG achievement
ED data in most of the analysis for this study. within the communities since 2006. This
was done in an effort to examine from a
13 3. Community Level Evidence of Financial and Economic Crises and Impacts | United Nations
Development Programme
“baseline” that preceded the onset of the 8. What is the extent of change in
food and energy crises, which both occurred ethnic make-up of respondents in
in 2007 and which preceded the financial the communities over 2006 to 2009?
and economic crisis. The specific questions
which drove the query and statistical i. The 2006 Status
analysis are set out below. Households in PPA Focus Group
1. What are the differences in housing, Communities in the Belize City
education, the possession of Results of survey questions related to
communication and information household conditions for those EDs in the
technology equipment for all communities from which PPA participants
participants in the LFS and those were drawn were compared to those for all
living in the areas, which the PPA Belize City EDs. A higher percentage (5.6
focused on? What changes are percentage points) of the PPA communities
evident in those differences either owned or leased their homes or
between 2006 and 2009? What is squatted. Furthermore, there was virtually
the implication in terms of the no difference (0.2 percentage points)
impact of the FEC and the increases between homes that had water closets in
in energy and food prices? the areas where PPAs were conducted and
2. What were the predominant those of all LFS respondents.
livelihoods occupations in 2006 and Notwithstanding, there was a significantly
2009 of those persons living in the higher percentage (2.8%) of homes with
neighbourhoods that were the focus neither water closet or pit latrines in the
of the 2010 participatory poverty areas were PPAs were undertaken than in
assessments? the homes of all Belize City labour LFS
3. Which of the MDGs are most respondents combined (0.7%).
impacted by the disadvantages and The proportion of PPA communities with
survival strategies of the residents of access to piped water was slightly higher
the areas of focus of the PPA? (96.5%) than that of the full dataset
4. To what extent do LFS results for the (95.7%). A lower proportion of the
2006 – 2009 years coincide with respondents in EDs within the PPA areas
LSMS/CPA findings of predominance indicated use of standpipe and hand
of informal sector in occupations of pumps: 2.1% and 51.7% respectively for the
urban poor? PPA communities compared to 2.9% and
5. To what extent have the 63.0% respectively for the total dataset. A
communities accessed government slightly higher percentage (23.8) of the
assistance during the period 2006 to households from the focus communities
2009? had access to covered vats and drums.
6. What are the implications of living Interestingly, these households indicated
habitat conditions for the MDGs? higher levels of access to purified water
7. What is the change in proportion of (79.7%) than did all the EDs in the city
persons in the communities born (74%). Most importantly, however, is that
outside of Belize? the percentage of these respondents that
Rapid Impact Assessment of Financial and Economic Crisis on Poverty and Vulnerability
14
indicated purified, bottled water as their those living in the same communities who
main source of drinking water was lower were born outside of Belize, 2.6% were
(60.8%) than the percentage of all Belize born in Central America. By comparison,
City LFS respondents citing this as their the proportion of all Belize City respondents
main source (66.9%). A full one quarter who were born in neighbouring Central
(25.9%) of the PPA communities used piped American countries was 3.6%.
water as their main source of drinking
Those from the PPA communities who were
water compared to the proportion of all
self-employed or owned businesses made
Belize City LFS respondents (21.3%).
up 24.4% of the residents of the same areas
Furthermore, a significant 11.9% use
whereas 27.0% of respondents in Belize City
covered drum, vat or well as their main
owned their own businesses. There were
source.
slightly more government and private
Where telephone lines and computers are sector employed persons living in the same
concerned, the proportions with access and areas (portions of Port Loyola, Pickstock and
possession within the EDs covering the PPA Lake Independence) than in all of Belize
areas were 56.6% and 14.7%, respectively, City. A full 1.9 percentage points less of the
compared to 61.5% and 26.6% for the full respondents from the PPA communities
dataset. were employed by statutory bodies than
were so employed in the city as a whole.
Individuals in PPA Focus Group
Communities in the Belize City The proportions of those surveyed in the
PPA communities who were employed in
In terms of ethnicity, there were higher Tourism, Manufacturing and Agriculture
proportions of Creole and East Indian were higher than the proportions in the
residents of the PPA communities than same industries in all of Belize City.
there were in the full LFS sample, and a Reflecting this, the proportion of residents
significantly lower population of Mestizos. in these areas who cited occupations as
There were also slightly lower proportions Agriculture and Forestry Workers and Plant
of Garifuna and Asians. The difference in and Machinery Operators were much
the proportion of Maya population in both higher (23.4% and 17.9%, respectively) than
groups was minimal, and whilst there were the proportions of all Belize City LFS
marginal proportions of Caucasians and respondents with the same occupations
Mennonite in the full dataset, none of these (2.1% and 6.7%, respectively).
ethnic groups were represented in the PPA
communities. Previous occupations cited by PPA
community respondents showed the same
Despite a wide variety of countries of origin degree of differences in these two
represented in the full dataset, only ten occupations—Agriculture and Fisheries and
were cited by the respondents in the PPA Plant and Machine Operators—between
communities as their country of birth. Of the two groups. Interestingly, however, the
the respondents from these communities, highest proportions of respondents in both
95% were born in Belize. This is a full 7.4 the PPA communities and the full set of
percentage point more than the 87.4% of all Belize City LFS respondents indicated a
Belize City respondents born in Belize. Of
15 3. Community Level Evidence of Financial and Economic Crises and Impacts | United Nations
Development Programme
desire to shift to the occupation of service higher proportion of the PPA communities
workers and shop sales workers and craft rely on savings and on spouses, partners
and related occupations. A slightly higher and other sources of income than in all of
proportion of the PPA community Belize City.
respondents wanted to shift to occupations
in the technicians and associate category Coping Strategies of PPA Focus Group
and in the agriculture and forestry category Communities in Belize City
than the proportion of respondents for the
Coping strategies which were relied on
entire city wishing to do so. Of further
significantly more by those Belize City LFS
interest, a full 2.2 percentage points less of
respondents living in the geographic areas
the respondents in the PPA communities
from which PPA participants were drawn
were looking to occupations as clerks than
than by all respondents were the following:
that of the entire Belize
City.
Figure 4: Comparative Coping Stratgies-Belize City
Comparison of the
years of completion of
schooling between the 60.0
PPA communities’
Percent
Rapid Impact Assessment of Financial and Economic Crisis on Poverty and Vulnerability
16
although the difference is small, a higher which limited the analysis. Furthermore,
proportion of those living in the areas from the fit of enumeration district for the Back-
which the PPA respondents were drawn A-Town area was not as close as it was with
indicated they rely on holding children back the Belize City EDs to the PPA focus group
from attending school. This is consistent areas there. In fact the ED which
with the findings of a separate PPA incorporated Back-A-Town also included
conducted by the National Assessment areas to the East, West and South of the
Team as a part of the country poverty PPA boundary (see map of area South by
assessment process (see Box 1). Havannah River to Salmwood Street, Annex
5). This therefore included more
economically affluent areas such as the
It is interesting to note also that whilst a Front Street.
percentage of all Belize City respondents to
the 2006 LFS indicated use of illegal Some 13 to 25 households in the EDs that
activities as a coping mechanism, no covered Wageirale-Benguche and Back-a-
respondent from the areas where the PPAs Town responded to questions regarding
were undertaken did so. This is contrary to ownership of houses and land, and sewer
the findings of the PPA conducted through system and telephone and internet access.
the CPA process (see Box 2) and may reflect In these cases, as well as that of questions
respondents’ reluctance to cite such activity which garnered the smallest number of
for fear of repercussions. Another point of respondents (of 4 persons) and which are
interest is that the proportion of not included in the analysis here, PPA area
respondents from the PPA areas that rely
on politicians for help is lower than those
for all of Belize City. Box 2: Coping and Illegal Activities
Across the board, the PPAs showed that
Households in PPA Focus Group
some individuals and households were
Communities in the Dangriga
involved in illegal activities as a
The number of household responses for supplementary means of supporting the
those communities in which the PPAs were meagre income.
conducted in Dangriga was very small, Country Poverty Assessment, p. 99
17 3. Community Level Evidence of Financial and Economic Crises and Impacts | United Nations
Development Programme
respondents accounted for at least 10% of and Back-A-Town areas of Dangriga was
the total LFS respondents in all of Dangriga small, but for the most part totalled more
Town. than 10% of the total 2006 LFS respondents
living in Dangriga Town. As with the PPA
In the main, the responses showed higher
communities in Belize City, the proportion
percentage of ownership or lease of houses
of Creoles and East Indians the PPA
and land by those persons living in the two
communities in Dangriga Town were higher
areas that PPAs were conducted than for all
than the percentage of the entire town. On
Dangriga Town respondents. The number of
the other hand, there were slightly higher
respondents from these areas that
proportions of Mestizo and Caucasian
indicated use of pit latrines (8.3%) was
respondents in these areas than in all of
lower than that of all Dangriga respondents
Dangriga town. A smaller percentage of the
(15.8%). Unlike the case with PPA areas in
respondents in the PPA communities were
Belize City, none of the respondents from
born in Belize than the percentage of the
the Dangriga PPA focus areas indicated that
same group in all Dangriga respondents:
they had no toilet facilities.
86.8% compared to 89.4%.
There were no significant differences in the
A significantly lower proportion (14.7%) of
percentages of households with telephone
the residents in the PPA communities in
installed in their homes between the
Dangriga owned their own businesses or
respondents from the areas in Dangriga
were self-employed than the proportion
from which the PPA participants were
(30%) of all Dangriga respondents that did.
drawn and those from all of Dangriga Town.
Moreover, there were higher proportions of
On the other hand, the proportion in the
government employees, and those working
PPA areas with access to computers was a
at statutory agencies or in the private
full 5.0 percentage points more than that of
sector living in the PPA communities than
all Dangriga Town respondents.
the proportion of all Dangriga respondents.
A significantly higher proportion of the PPA
Those working in transport, financial
communities (8.4%) indicated standpipes
intermediation, general government
and covered vats, drums or wells as their
services and community, social and
main source of drinking water compared to
personal services made up a higher
the proportion (4.5%) of all Dangriga Town
proportion of LFS respondents from the
LFS respondents. There were no differences
Wageirale-Benguche and Back-a-Town
between the proportion citing bottled
areas than in all of Dangriga. The
water as their main source whereas more of
proportions of respondents from the same
all Dangriga Town respondents (66.2%)
areas working in other sectors were lower,
cited piped water as their main source than
and except for the citrus industry, there
the proportion of the PPA communities that
were no respondents working in the
did.
primary sectors (agriculture, fishing and
Individuals in PPA Focus Group mining).
Communities in the Dangriga The percentage of residents of the
The number of respondents in the PPA Wageirale-Benguche areas who completed
communities of the Wageirale-Benguche eight years of schooling was slightly lower
Rapid Impact Assessment of Financial and Economic Crisis on Poverty and Vulnerability
18
than those in the entire town, and the in 2006 where residents of the PPA areas
proportions completing twelve and sixteen appeared to have less access to
years were higher. communication than those for all Belize City
was unchanged.
Coping Strategies of PPA Focus Group
Communities in Dangriga The percentage of respondents both from
all Belize City and the PPA areas with
There were only four respondents to the computers in the home increased from
coping question in the 2006 LFS from the 2006 to 2009. Furthermore, whilst the
area where the PPAs were conducted. As a percentage of homes with computers in
result, no analysis was done of coping those areas where PPAs were undertaken
strategies in Dangriga Town. was lower than that for all respondents, a
ii. The 2009 Status smaller difference recorded between the
level of access of the two groups in 2009
Households in PPA Focus Group (7.1 percentage points) than was noted in
Communities in the Belize City 2006 (11.9 percentage points).
As in 2006, higher proportions of those who A significantly lower proportion of the
live in the areas from which the PPA Belize City 2009 LFS respondents cited
participants were drawn indicated through piped water as their main source of
the 2009 LFS that they either owned or drinking water than in 2006, and a higher
leased their homes and lands compared to proportion indicated their source as
all Belize City survey respondents. A slightly purified bottled water. On the other hand,
higher proportion also indicated their the proportions of the households in areas
homes had water closets. Compared to where PPAs were conducted that cited
2006, the proportion of respondents with piped water as the main source in 2009 was
water closets from the areas where the almost the same as that for 2006. Reliance
PPAs were undertaken was the same at on bottled water was higher in 2009 than in
2.8%. On the other hand, the proportion of 2006 for this group also, whilst use of
all Belize City respondents with no toilet covered vats, drums and wells was
facility (water closet or pit latrine) was significantly lower.
higher (1.3%) than in 2006 (0.7%).
Reflecting the trend across the Caribbean of
preference for cellular service over fixed
lines, the percentage of Belize City
household LFS respondents with telephone
was lower in 2009 than in 2006. This
included those areas where PPAs were
conducted. Notwithstanding, the
proportion of 2009 respondents with fixed
line connections in the PPA communities
was lower than that for all respondents.
This implies that the overall situation noted
19 3. Community Level Evidence of Financial and Economic Crises and Impacts | United Nations
Development Programme
areas was lower than that for all Belize City
4. Key Risk Management Issues, respondents, the differences were not
Identified Changes and significant enough to be alarming. In
addition, the CPA showed the informal
Recommended Measures
sector as a major source of employment for
A. Key Issues and Identified the poor. These factors together
Changes underscore the enabling conditions for self-
employment as a critical component for
i. Economy ensuring improved income generating
Whilst income data was not available for capacities of residents of these areas.
analysis from the 2009 LFS, the responses in iv. Education
the PPA sessions as well as the results of
the country poverty assessment (CPA) show The average years of schooling of 2006 LFS
that the economic situation has become respondents from those areas where PPAs
more acute. The CPA results confirm this were conducted was lower than the
change over the past decade, but the PPAs average in all of Belize City. As well, the
conducted by Belize Enterprise for income levels were also lower suggesting a
Sustainable Technology suggest that the need for measures toward improving access
increased pressure has been more acute to education. Moreover, the predominance
over the latter part of the decade. This of average years of schooling of eight years
coincides with the onset of the financial over those of twelve and sixteen suggest
crisis. that many respondents did not attend high
school. When combined with coping
ii. Employment and Living Standards strategies of holding children back from
Whilst no data was available for comparison school, this suggests the need for specific
of the 2009 average incomes to those for measures to promote access to and
2006, the knowledge that average incomes participation in secondary schools and
of those persons who live in the PPA focus beyond.
areas were lower than that for all survey v. Housing, Water and Sanitation
respondents in 2006 is important. This
suggests that there is less likelihood that The higher proportion of house and land
these residents would have a financial ownership amongst PPA areas is notable
buffer against shocks. This impression is and may be counter-intuitive. This feature
reinforced by the fact that use of savings is may reflect two factors. The first would be
one of the lowest ranked coping strategies that these areas, with the exception of
for respondents from the PPA focus areas. Belama in Belize City, and Wageirale in
It also coincides with PPA participants’ Dangriga, are among the earliest settled. A
description of their own existence as “hand second factor is that land ownership in part
to mouth”, or barely at subsistence level. represents a risk mitigation strategy.
Ownership is often sought by Belizeans in
iii. Self Employment and Entrepreneurship order to ensure that shelter is secured.
Although the proportion of 2006 LFS
respondents from the PPA focus group
Rapid Impact Assessment of Financial and Economic Crisis on Poverty and Vulnerability
20
vi. Access to Communication and tertiary public sector services are all heavily
Technology subsidized) and education. Use of these
Whilst levels of access to communication services constitutes access to social welfare
and technology appear to have improved assistance but may not be considered or
between 2006 and 2009, there is a need for cited as such by respondents.
improved income levels that will enable x. Local Governance
equity in access between those residents of
the PPA focus group communities and the The responses to questions of whether any
rest of the urban population, especially in assistance has been accessed from
Belize City. politicians suggest that there is little
reliance on officials for coping by PPA
vii. Susceptibility to Natural Disasters participants. This result is counterintuitive
The ownership status notwithstanding, the in light of a widely held belief that the less
housing and habitat conditions described by advantaged are the main clients of weekly
the PPA facilitators suggest significant need clinics of their area representatives. It is
for housing conditions of the PPA focus area believed, moreover, that these visits are
residents to be improved in order to often in search of financial assistance to
mitigate disaster risk and to cope with address utility bills, among other things.
catastrophic events. The effects of xi. Remittances and Social Capital
Hurricane Richard on the homes and
livelihoods of residents of the Yarborough Whilst remittances was expected to feature
community, one of the PPA areas, reinforce strongly as a means of coping for the
this need. communities examined, their responses
indicate a lower reliance on relatives living
viii. Demographic and Migration Trends abroad and more frequent access domestic
It is notable that the proportions of support system. This implies that there is
migrants are lower in the areas where the still a fair level of social capital which can be
PPAs were undertaken, and that moreover factored into solutions for improvement.
where migrant populations are identified,
B. Measures for Mitigation of FEC
they are predominantly from neighbouring
Impacts
Central American countries. These features
are especially marked in Belize City, The key objective of this analysis is the
whereas there appears to be less distinction identification of the impact of the FEC on
in Dangriga Town. vulnerability and poverty. In this regard the
analysis shows lower average income levels
ix. Social Welfare Assistance and years of schooling in the communities
The low proportions indicating access to in which the PPAs were conducted than in
social assistance is notable. Consideration the rest of the urban areas of Belize City
must be taken of the fact also that survey and Dangriga. In addition coping strategies
questions may not be couched around use used by the residents of these areas result
of heavily subsidized services, such as in the in loss of nutritional intake and children’s
areas of health (primary, secondary and time in schools. These pose further threat
21 4. Key Risk Management Issues, Identified Changes and Recommended Measures | United Nations
Development Programme
to any effort to improve income levels and included. This institution should be
to health levels. The latter suggest further a credible and financially sound non-
risk of remaining locked into poverty cycle. profit or a window at a credit union.
The most pressing needs for mitigation are Small grant program to provide
toward supplementing and supporting training and seed funding to women:
permanent increases in income levels. Women entrepreneurs from the
Based on the analysis, measures to support communities of concern should be
mitigation against the FEC impacts must be supported through training grants
focused on supporting communities to cope and seed funding for a viable
with shocks and to acquire the means to economic activity. A viable agency
generate and/or diversify income. The for channeling such funds and for
latter suggests the need for tools to build coordinating the training could be
human capital and financial asset, which are the Young Women’s Christian
key mitigation strategies. Association (YWCA).
Expansion of Small Grants Program
One of the main measures for addressing
at Youth Business Trust and through
families’ coping strategy of holding children
the Development Finance
back would be a conditional cash transfer
Corporation to pilot new and
which is under development, and being
targeted special programs, with the
piloted to an extent in Belize City. This
objective of alleviating the
program will hinge especially on children’s
difficulties in ‘poorer’ communities.
attendance in schools and health clinics,
This would enable the youths and
and can be one of the single most effective
aspiring entrepreneurs to access
measures undertaken.
startup funds for businesses to
Other initiatives that could be implemented become self-sufficient.
to support increase in earning potential Pool procurement: Existing
include for immediate impact: artisanship and other micro-credit
A funded training program in a operations can benefit from pooling
viable trade: For immediate impact, procurement requests to reduce
an activity which the residents of cost. To ensure adequate levels of
the communities are skilled in or can trust and continuity, a non-profit
be easily trained for, and which has institution could anchor the
good market potential, should be procurement process.
identified and built on in terms of Community Housing Improvement
economic a training program. Program: A variation of the Habitat
A rotating savings credit program for Humaity approach should be
used to finance a trade: Using a developed for areas where
value chain approach, financing improvement in housing conditions
options for the same activity needs are most acute. This measure
identified should be established. A is one of the most urgent in terms of
rotating-saving-credit arrangement mitigation against disaster risk.
anchored in an institution may be
Rapid Impact Assessment of Financial and Economic Crisis on Poverty and Vulnerability
22
Toward medium-long term impact and effort to establish a conditional cash
systemic improvement in income and living transfer program and SISB. In light of the
conditions: pull on the youth indicated through the
PPA, however, these programs will need to
Business Incubators: This initiative
be injected with conflict resolution
could include identification of
components.
funding for national business
incubators for small and medium
enterprise exporters. Care would
have to be taken to ensure that the
measures of the incubator promote
graduation within a specific period
and that the beneficiaries are aware
of, agree to and comply with
requirements for disclosing business
plans and progress with mentors
and for receiving and applying
recommendations for improvement
of plans and plan compliance as they
progress. Another avenue could be
the promotion of use of an
international incubator that is
established to support transnational
business. This could be a measure
aimed at more established
businesses, however, and the
returns in terms of additional
employment generated in Belize
may have less impact.
Finally, there is a pressing need to build
social capital and strengthen organizations
that can work at the community levels, such
as non-government organizations (NGOs)
and community groups. The reliance of the
respondents on local residents and to a
lesser extent on politicians for help in terms
of coping suggests that their support base
must be easily accessible and trusted.
Developing or strengthening community
level organs that can collaborate in areas
such as housing improvement and skills
training may be one of the single most
important measure, aside from the ongoing
23 4. Key Risk Management Issues, Identified Changes and Recommended Measures | United Nations
Development Programme
Bibliography
Annual Report, (Central Bank of Belize, 2000 - 2009).
Population Census 2000 Major Findings, (Central Statistical Office).
Attachment VII, The Working Document for the Seventeenth Meeting of the Council for Human
and Social Development (COHSOD), (Council for Human and Social Development,
Georgetown, Guyana, 2008).
Understanding Vulnerability - Ensuring Appropriate and Effective Responses, (Global Crisis
Solutions).
Country Poverty Assessment (unpublished), (Government of Belize and Caribbean Development
Bank, June 2010).
Robert Holzman and Steen Jorgensen, Social Risk Management: A New Conceptual Framework
for Social Protection and Beyond, (World Bank, 2000).
Machiko Nissanke and Erik Thorbeke, The Impact of Globalization on the World’s Poor:
Transmission Mechanisms, (2000).
Belize Basic Indicators 2008, (Office of Director of Health Service, Epidemiology Unit, Ministry of
Health, Belize, 2009).
Belize Basic Indicators 2006, (Belize, 2007).
C.Y. Thomas, Global Economic Crisis: CARICOM Impacts and Responses, (2009).
Ben Wisner, Pierres Blaikie, Terry Cannon and Ian Davis, At Risk - Natural Hazards, People’s
Vulnerability and Disaster, (2005).
Rapid Impact Assessment of Financial and Economic Crisis on Poverty and Vulnerability
24
Annex 1: Approach to the Analysis
The approach used to meet the objectives and outputs set out in the TOR are described below.
1. Determination of the four transmission channels through which the FEC had the most
significant impact on Belize: The sources of data and analysis include:
a. Central Bank of Belize Annual Reports - macroeconomic analysis, balance of
payments statistics and trends, monetary aggregate trends, fiscal and public
sector debt trends
b. Statistical Institute of Belize - labour force statistics, domestic production and
prices, international merchandise trade, living standards measurement
c. Reports - country poverty assessments and participatory poverty assessment
2. Establishment of links through which the macro-level impacts directly affect social and
economic conditions at the community level: To meet the TOR requirement of ensuring
that the recommended measures to redress the support MDG achievement, this step
includes identification of the specific MDGs affected.
3. Examination of community level changes that can be attributed to the FEC based on the
country poverty and participatory poverty assessments. The communities used to
identify the changes are those for which participatory poverty assessments were
undertaken through initiative of the Ministry of Economic Development and the United
Nations Development Program. The communities are-
4. Research and analysis of data and information to identify and measure trends in
indicators which show extent of socioeconomic vulnerability and FEC impact at the
community level: Sources would include:
a. Living standards survey and/or labour force surveys;
b. Household survey;
c. Information and/or interviews from key social sector ministries
i. Ministry of Human Development - Statistics and historical data on supply
of and demand for financial support to families in need; and
ii. Ministry of Education - Education Statistics for schools located in key
urban areas.
5. An Examination of the relevant policies and programs that influence conditions at the
micro / community level and of communities’ access to resources and assets.
6. An Assessment of institutional frameworks of agencies with strong links to the
communities to determine the extent to which they are able to help communities
respond to the FEC impact. Such agencies will include:
a. Local Government (city and town councils)
b. Government and NGO operated health and education facilities.
c. Financial intermediation and technical support agencies (this group would
include Credit Unions and NGOs).
Rapid Impact Assessment of Financial and Economic Crisis on Poverty and Vulnerability
26
Annex 2: Key Concepts
Effectively identifying the FEC impact on poverty and vulnerability of communities in Belize City
and Dangriga requires a clear understanding of a number of key concepts. This understanding
in turn informs the determination of conditions and indicators that will demonstrate the impact
of the FEC at the national level and its link to community level changes. More specifically, clear
concepts help to focus the research in such a way that the required evidence of the FEC impact
on poverty and vulnerability can be unearthed. It also helps to formulate the effective policy
and response measures for mitigation.
The most important terms for the execution of this study were (a) exogenous shocks, (b)
transmission channels, (c) poverty, (d) vulnerability and (e) social protection. The definitions of
these concepts as applied and/or adhered to in this study are described in the remainder of this
Section.
C. Social Protection
The ability to withstand external shocks such as the financial and economic crises of 2006/07-
2008/09 hinges on risk management systems and measures. These are often enshrined in a
social protection system. Holzman and Jorgenson define social protection as “public
interventions to (1) assist individuals, households, and communities to better manage risk and
(2) provide support to the critically poor” (2000, p. 3). This definition of social safety builds on a
social risk management framework which recognizes all households and individuals as being
vulnerable to both natural and man-made risks. This latter includes economic downturns or
recessions. The authors further indicate that, given this definition and the underlying
framework, social safety provisions are, inter-alia:
A safety net as well as a springboard for the poor;
A type of investment in human capital formation, rather than a cost; and
A focus on the causes of poverty, rather than the symptoms.
Building on Holzman and Jorgenson’s definition, the World Bank’s Poverty Reduction Strategy
Sourcebook describes measures to design an effective social protection program (draft, n.d.).
Importantly, the identification of structural and transitory vulnerabilities is essential for the
design of an effective program. A set of structural and transitory vulnerabilities identified can
be found at Box 1 overleaf. The indicated impacts of the FEC arising from the PPAs and
reinforced by the statistical analysis were assessed to determine which of the two groups they
fit so that the best recommendation could be made for interventions as required by the TOR.
Rapid Impact Assessment of Financial and Economic Crisis on Poverty and Vulnerability
28
Box 1: Sources of Vulnerability and Risk Relevant to Social Protection
Structural vulnerabilities
High levels of poverty, large numbers of extreme poor, and high levels of inequality
Lack of access to basic services
Seasonality of employment, income, or consumption needs
High levels of lawlessness and crime
Geographic, gender, or ethnic concentration of the poor
Poor macroeconomic, labor, and social policies
Low asset levels and lack of asset portfolio diversification
Low skill levels of labor force
Structural unemployment (for example, for youth, graduates, or women)
Limited social and family networks or limited flow of information
High levels of child labor
Permanent physical or mental disability
Transitory vulnerabilities
Natural or weather-related, for example, earthquakes, floods, droughts, hurricanes,
or pests
Economic downturn or crisis, for example, recession, transition, inflation, wage
arrears, changes in taxation or spending, decline in production in sectors from which
workers are immobile, job loss
War, conflict, and violence (national, regional, or individual)
Illness or injury, for example, individual illness, epidemics, or temporary physical or
mental disability
Life cycle events, for example, effects on household income of old age, death of a
household member, widowhood or family breakup, or multiple births
Taken from Table 17.1, p. 168 of
Poverty Reduction Strategy Sourcebook
Rapid Impact Assessment of Financial and Economic Crisis on Poverty and Vulnerability
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Annex 4: Key Issues Highlighted by Participator Poverty Assessment per Urban Community
PPA Participant Areas Condition, Change or Response MDG Area Impacted
Prevailing Conditions and Underlying Risks
Wageirale-Benguche No electricity MDG 7
Single Community Water Pump MDG 7
Makeshift Wooden Houses (vulnerable to hurricanes) MDG 7
Thorough ways meandering around homes (no planning, vulnerability) MDG 7
Port Loyola Informal settlements in un-surveyed wetlands MDG 7
St Martin de Porres High number of informal settlements in swamp and wetlands MDG 7
Houses and shacks made of sub-standard housing material MDG 7
Changes, Responses and Survival Strategies
Wageirale Decline in (receipt) of remittances MDG 1
Cheaper food (nutrition and caloric intake compromised) MDG 1
Seeking housekeeping jobs (low income) MDG 1
Children kept back from primary school because of lack of clothes and shoes MDG 2
Increase in domestic violence against women MDG 3
Increase in health problems due to stress and poor diet MDG 6
Prostitution, including by girls as young as 11 years MDG 6
Back-A-Town Hand to mouth existence MDG 1
Under-nutrition MDG 1
Children out of school for lack of resources MDG 2
Teenagers moving in with older men MDG 2
Increase in domestic violence MDG 3
Prostitution (risky health habits); increase in HIV/AIDS MDG 6
Postponing expenditure on health care and basic needs MDG 6
Yarborough price increases/cost of living rises MDG 1
Gambling MDG 1
Drug and alcohol use N.A.
Difficulty accumulating resources for cost of transition from primary to secondary MDG 2
school
31 Annex 4: Key Issues Highlighted by Participator Poverty Assessment per Urban Community | United
Nations Development Programme
Child prostitution MDG 2/MDG 6
Increase in level of crime N.A.
Youth delinquency N.A.
Belama Phase IV Malnutrition MDG 1
Cutting back on type and quantity of food MDG 1
Children withdrawn from school MDG 2
Children under-resourced for school MDG 2
Increase in domestic violence MDG 3
Women feel exploited in terms of wage differentials MDG 3
Increase in Dengue Fever, Malaria and Flu; Malnutrition MDG 6
More crime N.A.
Building and inhabiting make-shift homes MDG 7
Pickstock Increase in cost of living/decline in standard MDG 1
Hustling (additional short term jobs) MDG 1
Drug use MDG 1
Dependence on remittances MDG 1
Begging MDG 1
Sale of drugs MDG 1
Trafficking of young girls MDG 2
Physical abuse of children MDG 3
Prostitution MDG 6
Port Loyola Increase in domestic abuse MDG 3
Increase in crime and retaliation practices N.A.
Self-imposed curfews N.A.
St. Martin De Porres Price increases MDG 1
Increase in begging MDG 1
Proliferation in gambling MDG 1
Homelessness MDG 1
Informal credit MDG 1
Sale of personal possessions MDG 1
Increase in domestic abuse MDG 3
Increase in violence against children MDG 4
Rapid Impact Assessment of Financial and Economic Crisis on Poverty and Vulnerability
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Annex 5: Geographic Boundaries and Main Profile of Participatory Poverty
Assessment Communities
33 Annex 5: Geographic Boundaries and Main Profile of Participatory Poverty Assessment Communities |
United Nations Development Programme
Rapid Impact Assessment of Financial and Economic Crisis on Poverty and Vulnerability
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35 Annex 5: Geographic Boundaries and Main Profile of Participatory Poverty Assessment Communities |
United Nations Development Programme
Rapid Impact Assessment of Financial and Economic Crisis on Poverty and Vulnerability
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37 Annex 5: Geographic Boundaries and Main Profile of Participatory Poverty Assessment Communities |
United Nations Development Programme
Rapid Impact Assessment of Financial and Economic Crisis on Poverty and Vulnerability
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39 Annex 5: Geographic Boundaries and Main Profile of Participatory Poverty Assessment Communities |
United Nations Development Programme
LFS 2006 Belize City h1: Does this household own, lease, rent or squat this dwelling?
Rapid Impact Assessment of Financial and Economic Crisis on Poverty and Vulnerability
40
Annex 6: Main Tables - 2006 Labour Force Survey
LFS 2006 Belize City h2: Is this land owned, leased or in some type of occupancy?
LFS 2006 Belize City h3: What type of toilet facility does this household have?
LFS 2006 Belize City h4: What is the main source of lighting for your household?
41 Annex 6: Main Tables - 2006 Labour Force Survey | United Nations Development Programme
Total 1,395 187
LFS 2006 Belize City h5: What is the main type of fuel used for cooking?
LFS 2006 Belize City h62: Does this household have a computer?
Rapid Impact Assessment of Financial and Economic Crisis on Poverty and Vulnerability
42
Missing System 326 44
Total 1,395 187
43 Annex 6: Main Tables - 2006 Labour Force Survey | United Nations Development Programme
15 23 .8 3 .8
16 96 3.5 9 2.5
17 48 1.8 2 .6
99 21 .8 3 .8
Total 2740 100.0 358 100.0
LFS 2006 Dangriga h1: Does this household own, lease, rent, or squat, in this dwelling?
Rapid Impact Assessment of Financial and Economic Crisis on Poverty and Vulnerability
44
LFS 2006 Dangriga h2: Is this land owned, leased or in some type of occupancy?
LFS 2006 Dangriga h3: What type of toilet facility does this household have?
LFS 2006 Dangriga h4: What is the main source of lighting for your household?
LFS 2006 Dangriga h5: What is the main type of fuel used for cooking?
45 Annex 6: Main Tables - 2006 Labour Force Survey | United Nations Development Programme
Valid 1: Gas-Butane 142 90.4 22 91.7
2: Wood 5 3.2 2 8.3
3: Kerosene oil 2 1.3
6: None 7 4.5
9: DK/NS 1 .6
Total 157 100.0 24 100.0
Missing System 53 14
Total 210 38
Rapid Impact Assessment of Financial and Economic Crisis on Poverty and Vulnerability
46
Missing System 694 116
Total 1055 183
47 Annex 6: Main Tables - 2006 Labour Force Survey | United Nations Development Programme
Annex 7: Main Tables - 2009 Labour Force Survey
LFS 2009 Belize City h1: Does this household own, lease, rent, or squat, in this dwelling?
LFS 2009 Belize City h2: Is this land owned, leased or in some type of occupancy?
LFS 2009 Belize City h3: What type of toilet facility does this household have?
District Select Eds
Rapid Impact Assessment of Financial and Economic Crisis on Poverty and Vulnerability
48
Missing System 265 15
Total 903 86
LFS 2009 Belize City h4: What is the main source of lighting for your household?
LFS 2009 Belize City H5: What is the main type of fuel used for cooking?
LFS 2009 Belize City h6_2: Does this household have a computer?
49 Annex 7: Main Tables - 2009 Labour Force Survey | United Nations Development Programme
LFS 2009 Belize City h8: Main source of drinking water?
LFS 2009 Belize City H1: Does this household own, rent, or squat, in this dwelling?
District Select Eds
LFS 2009 Belize City H2: Is this land owned, leased, or in some other type of occupancy?
Rapid Impact Assessment of Financial and Economic Crisis on Poverty and Vulnerability
50
LFS 2009 Belize City H3: What type of toilet facility does this household have?
LFS 2009 Belize City H4: What is the main source of lighting for your household?
LFS 2009 Belize City H5: What is the main type of fuel used for cooking?
51 Annex 7: Main Tables - 2009 Labour Force Survey | United Nations Development Programme
LFS 2009 Belize City H6_2: Does this household have a computer?
LFS 2009 Belize City H8: What is the main source of water for this household?
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53 Annex 7: Main Tables - 2009 Labour Force Survey | United Nations Development Programme
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